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San Diego Vacancy Rate Hits Record Low

SAN DIEGO-Busy leasing by dot-com and biotech tenants push office rate down to 5.4%, roughly half last year's level.

By Randyl J. Drummer | Updated on August 18, 2000

SAN DIEGO-A new report says that strong demand from local high-tech and biotech firms has pushed the county’s office vacancy rate to a record low of 5.4%.

The vacancy factor at the start of the third quarter was barely half the level of 10.3% reported a year ago, according to the new report by real estate services giant Grubb & Ellis. Absorption totaled more than 2.7 million sf in the first half of this year, greater than the total absorption in all of 1999.

“Tenants of all sizes will be faced with a tremendous challenge in theirsearch for new space,” says David O’Rell, research analyst for Grubb & Ellis. “With only 1.9 million sf under construction,the number of opportunities will remain rather limited—especially fortenants requiring more than 20,000 sf.”

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